Brazil’s real weakened in early trading on Thursday to around 4.16 to the dollar, nearing its lowest levels in more than a decade, after the central bank surprised markets and held rates stable despite inflation running at more than 10 percent a year.
The central bank’s monetary policy committee, known as the Copom, kept rates at 14.25 percent after a two-day meeting that ended late Wednesday.
That marked an about-turn from more hawkish signals it had fed markets in previous weeks. Central bank chief Alexandre Tombini had flagged the change of stance on Tuesday, when he said the bank would take into account a significant downgrade of Brazil’s growth outlook by the International Monetary Fund.
The currency has weakened nearly 5 percent so far in January after losing 32 percent of its face value against the greenback over 2015.
Brazil Energy Insight 
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